Buying Life Insurance Policy? Know All Your Rights and Duties

Often insurance policyholders fail to make the most of their policy because they are unaware of the terms and conditions. If you have recently purchased a life insurance policy or if you wish to buy one soon, as a smart investor, you must be aware of your rights and duties about the policy coverage and claim.

As a life insurance policyholder, you must fulfil specific duties before and after. life insurance policy buying Duties before buying a life insurance policy

• You must thoroughly assess your insurance needs and the reason for purchasing an insurance cover.
• It would help if you chose the tenure, the sum assured of the policy based on your specific needs and financial condition.
• You must compare the different plans offered by different insurance companies and make an informed buying choice.
• You must fill the insurance application form correctly and fill all the fields.
• You must provide details of the nominee

Duties after buying a life insurance policy

• Comply with the necessary post-purchase formalities, including submission of relevant documents.
• Follow-up with the insurance company for the insurance policy papers after 15 days from submitting the application.
• Upon receiving the policy papers, you must carefully read the terms and conditions regarding the tenure, benefits, nominee details, and check if the policy details are as per the specifications provided to you at the time of policy buying.
• Pay the premiums regularly.
• Intimate the insurer about changes in the address, bank details, etc.
• If you lose your policy-related documents, you must immediately report the same to the insurer and get a duplicate copy.

While you must carry out the insurance duties diligently, you must not hesitate to exercise your rights. As a life insurance policyholder, you have the right to:

• Know complete details of the policy
• Return the policy within 15 days from the date of receipt of the documents, provided you are not satisfied with any of the terms and conditions.
• Get the refund for the premium paid
• Change the nominee details by intimating the insurer.
• Add more than one nominee and specify the percentage of the benefit each may receive.
• The policy nominee has the right to claim the death benefit in case of a policyholder’s demise.

Final Word Knowing your rights and duties can go a long way in making the best use of your life insurance policy and protect your family from financial risks.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.